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The Estate Maximizer Single Payment Whole Life Insurance Maximize an estate. Minimize the wait. Eliminate the hassle.

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Presentation on theme: "The Estate Maximizer Single Payment Whole Life Insurance Maximize an estate. Minimize the wait. Eliminate the hassle."— Presentation transcript:

1 The Estate Maximizer Single Payment Whole Life Insurance Maximize an estate. Minimize the wait. Eliminate the hassle.

2 Not for use with the public Estate Maximizer A Single Payment Whole Life Insurance Contract 1 Issued by: Liberty Life Assurance Company of Boston, Member Liberty Mutual Group Home office Boston, MA 1.In NY, form PI-PSP-9411-NY. Not available in KY and NJ.

3 Not for use with the public Target Markets Conservative investors age 60-85, planning to leave money to heirs. People with large amounts of cash in (CD’s, Money Markets, Savings, etc.) Annuity contract holders Pre-1988 SPWL policyholders Non-performing UL policyholders Minimum distributions from qualified plans

4 Not for use with the public Desires of Seniors Leave a living memory (know that they are not forgotten) Leave the next generation better off than they were See that their grandchildren have excellent opportunities See that their favorite charities continue to grow

5 Not for use with the public But…They Still Have Needs Not to burden their children To be cared for properly To access funds in case of an emergency To feel like they can still look after themselves

6 Not for use with the public They Tend to… Be conservative in nature Dislike lengthy processes Dislike excessive fees or charges

7 Not for use with the public They Want… Honesty Integrity To know that their best interest are being considered Flexibility

8 Not for use with the public So let’s look at some real life cases The following are a few actual Estate Maximizer cases which have been placed in the last couple of months. They represent real scenarios of today’s senior investor.

9 Not for use with the public Male Age 70 $50,000 in VA Worth $35,000 Presently $35,000 into Emax $54,134 of DB Replaces Loss $48,721 of ADB Unable 2 of 6 ADL’s Tax Free Lump Sum Access to Cash 10% or Gains Loans Annuitization

10 Not for use with the public Female Age 65 $100,000 in Fixed Annuity $70,000 Cost Basis 28% Tax Bracket $50,000 into EMax Hold out $8,400 to cover taxes $41,600 net into EMax Buys $80,317 of DB Gets $72,285 of ADB In 5 years, CV of EMax worth $45,930 Still have $80,317 of Tax Free DB $50,000 into 5 year fixed annuity In 5 years, FA worth $62,308 Only $12,308 will be gain versus $30,000 before split Total DB is $142,625, equal to an 8.5% ROI

11 Not for use with the public Female Age 83 $179,000 in CD’s She wanted to leave as much money as possible to her loved ones Wanted to retain control for access purposes Full $179,000 in EMax Bought $234,436 in DB Gave her $210,992 in ADB access 3 Stand Outs At 83, Advisor was able to get life coverage Since client had complete physical in previous 6 months, no para medical was needed, only APS Wasn’t underwritten in 10 minutes, but the process was simple for the results gained!

12 Not for use with the public Product Benefits For your clients: Safety – 100% Principal Guarantee Access to cash Life Insurance death benefit – more to heirs For you the Advisor: 10 minute jet underwriting 1 Control of underwriting is in your hands, not the company’s Knowledgeable back office support Weekly commission payments 1.Some restrictions apply

13 Not for use with the public Safety Backed by the full strength of Liberty Mutual Guaranteed return of principal 1 Guaranteed account values Guaranteed initial death benefit Guaranteed to endow at age day free look 1.Barring loans or withdrawals. Not available in NY. 2.Gross 5% in non-NY states and 4% in NY Day free look in NY.

14 Not for use with the public Attractive Returns Premium earns interest immediately Renewal rate declared on each anniversary and locked for the next contract year Accumulations grow tax deferred.

15 Not for use with the public Access to Cash Partial withdrawals up to the greater of contract earnings or 10% of accumulation value Low cost loans –Interest 4% charged; 4% credited –Principal 6% charged; 4% credited Extended Care Benefit 1 –Qualified medical stays - 45 out of any continuous 60 day period –Insured or insured’s spouse –Withdrawal charges waived 1.Not available in SC or NY

16 Not for use with the public Accelerated Death Benefit 1 Up to 90% of death benefit (max $250,000) Payable while alive if terminally ill or chronically ill Chronically ill defined as unable to complete 2 of 6 ADL’s Terminally ill, less than 24 months to live – insured only Accelerated benefits not taxable under current law Free Riders. 1.May be different by state.

17 Not for use with the public Life Insurance Death Benefit Immediate increase in estate value – more to heirs Passes income tax-free under current tax law Estate tax-free if set up correctly – please consult with a tax advisor.

18 Not for use with the public 10 Minute Jet Underwriting Eligibility Stay within min and max premium guidelines “NO” answers to all parts of question 9 MIB inquiry does not prompt further investigation

19 Not for use with the public 10 Minute Jet Underwriting Normal underwriting applies if: Premium exceeds jet issue limits Any “YES” to question 9 or if MIB prompts further investigation. Normal underwriting in most cases does include blood and urine etc. It requires medical records review.

20 Not for use with the public 10 Minute Jet Underwriting Minimum Premium = $10,000 Maximum Premium = AgeMax* 45-59$50, $65, $100,000 $25,000  Larger amounts available with normal underwriting.

21 Not for use with the public 10 Minute Jet Underwriting “NO” answers to question Has the insured been: A. Hospitalized or surgically treated within the last five years for heart disease or heart failure?  Yes  No B. Treated within the last 5 years for cancer?  Yes  No C. Diagnosed with or treated within the last 10 years by a member of the medical profession for: heart attack, stroke, mini-stroke, vascular and circulatory disease, Alzheimer’s disease, dementia, or abnormal chest X ray?  Yes  No D. Diagnosed with or treated within the last 2 years for a hip fracture?  Yes  No E. Declined, refused or turned down for life insurance?  Yes  No

22 Not for use with the public It’s as Easy as ) Complete the Application for Life Insurance and the Signature Page. Be sure to write in your Agency name, telephone number and fax number 2) Fax the white copies in the following order to (It is not necessary to attach a cover sheet or call ahead) –A) Application for Life Insurance –B) Signature Page 3) A Liberty representative will call you within 10 minutes to let you know if the policy can be “Instant Approved.” However, if you do not hear from us after 15 minutes, please call our Service Team at

23 Not for use with the public Things to Know Issue ages 0-85 (age last birthday) Issue Classes: Standard and Class A 2 nd to Die Option available Modified Endowments (MEC) – taxes and penalties may apply for loans or withdrawals before 59½. 7 year surrender period AgesYear % of Single Premium 7% 6%5%4%3%2% 81-85% of Single Premium 5% 4% 3% 2%

24 Not for use with the public The Choice is Yours ( Illustrative Results After One Year ) Assumes $30,000 principal, 2.0% net interest, 33% tax bracket Taxable Tax- Deferred Income Tax-Free 1 Principal$30,000 Value After One Year$30,600 Current Taxes$198$0 After Tax Value$30,402$30,600 Deferred Taxes to Heirs$0$198$0 After Tax Value to Heirs$30,402 $30,600 Total Benefits to Heirs$30,402 $57,921 2 Additional Benefits to Heirs$0 $27,321 1.Account value grows tax-deferred. Death benefit passes income tax-free 2.Initial death benefit for a female age 65

25 Not for use with the public About Liberty Liberty Mutual Group 1 $56 billion in consolidated assets Nation’s largest writer of workers compensation 6 th largest property & casualty insurer A (Excellent) AM Best A (Strong) Standard & Poors Liberty Life 1 A wholly owned subsidiary of Liberty Mutual Group Leading writer of Life Insurance through banks Top ten writer of Structured Settlement Annuities A- (Excellent) AM Best A (Strong) Standard & Poors 1.As of 12/31/2002

26 Not for use with the public Contact Information CPS Ron Viola Insurance PO Box 6250 Los Osos, CA Tel Paul Irving – ext. 19 Internet


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